Category Archives: World of Customer Service

May 16 2012

Retention is Not Marketing

One of the biggest philosophical errors in business today is the thought that marketing should drive customer retention. In the article Customer acquisition versus customer retention, the author talks about which of these options (acquisition v. retention) is the best use of marketing dollars. While there are several good points in the article, the bigger point I’m focused on is the “best use of marketing dollars” concept.

Marketers far too often view “retention” as the next “campaign” where we’ll push this product or that message in an e-mail blast or a glossy newsletter. We’ll promote this event or offer that discount with a big ad push.

But customer retention needs to be viewed differently. It’s not transaction-based or event-based. It’s not push-oriented. It’s relationship-oriented. It’s dialogue-oriented. It’s 1-on-1.

Now don’t mistake this statement to think that I’m promoting retention as something that has to be labor intensive and high cost. I’m addressing the mindset of it because this affects the strategy of it. Once you start thinking how can I retain Joe or Mary or Sue, once it’s Andre or Bea or Randy, the approach changes. It’s more personalized, more customized, more person-focused and less number focused.

You begin to think “How can I develop a relationship with this individual?” You ask “How can I keep them for the long-term?” You consider “How can I become vital to their day-to-day activities?” These types of questions lead to longer-term strategies, longer relationships, higher retention, and higher revenue.

Think about retention in 1-on-1 terms, not broad based marketing terms. Your decisions will change, and your performance will improve.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Apr 19 2012

Bet on Great Customer Service

A casino’s repeat business is purely dependent on whether the customer feels the exhilaration of the win…right?

Well the recent article Casinos Urged to Invest in Customer Service, Gaming Experience to Meet Multiple Challenges in 2012 says that it’s more than winning that drives loyalty and revenues.

The head of a casino consulting firm notes “Bare-bones state budgets, taxation, new casinos, social media and online gaming – these are all factors that will contribute to a challenging year for casinos.”

Essentially he says that if you’re a business with customers who are having financial struggles (like a sports team trying to keep season ticket holders), have competitors (like a hospital), are impacted by the proliferation of social media and alternative delivery changes for your service (like a college or university – or almost any business for that matter), then you might be having a tough time.

So if his premise applies to the situation of casinos, it probably also applies to the majority of other businesses today.

And what’s the proposed solution? Create a culture of customer service. The article notes that “The first step toward creating that culture is establishing service standards. The next step is training that helps employees meet those standards.”

So why is this suggested? This is where the author falls short…he doesn’t say why you need the culture of customer service, but I’ll fill that part in – it’s because the state of customer service is so poor today, that this is one area where you can differentiate yourself from competitors. It’s one place where Social Media doesn’t have a solid footing. It’s one place where you can build value when customers care more about the dollars they spend and with whom they spend.

Stop. Look at your competitors. Look at your customers. Look at your company.

Create a culture of customer service to build value with the customer and build a wall between your customers and your competitors.

Interested in assessing and improving your company’s customer service? Click here…

Apr 11 2012

Find a Fun Benchmarking Organization for Lessons on Service and Retention

Why did Apple benchmark with the Ritz-Carlton? Are computers the same thing as hotels?

Why did Southwest Airlines benchmark with NASCAR pit crews? Are airplanes the same things as cars?

Benchmarking is usually more about how you do something than what you do. In the article How the Ritz-Carlton Inspired the Apple Store, the author notes how Apple Stores went to the Ritz-Carlton to learn lessons on customer service. Similarly, many years ago Southwest Airlines went to work with NASCAR pit crews to learn how to turn planes at the gate more quickly.

Continuous improvement in any organization involves thinking beyond your world, growing your organization’s collective knowledge by learning from others. What’s more, it can be lots of fun learning, particularly from those in other industries.

To most effectively benchmark, think about how you deliver a service, interact with customers, communicate, process, produce. Try not to think of this in industry terms; instead, think of this in functional terms. For example, as a bank, don’t think “What bank does a great job of increasing the number of accounts with current customers?” Think more broadly such as “What organizations are great at retaining and selling more services to existing account holders?” Instead of benchmarking with another bank, they might consider benchmarking with a pro sports team.

Instead of a local municipality asking “What City/County governments do a great job with their website?”, they should ask “What organizations effectively engage their customers online and leverage those sites to drive interest and traffic to their programs and facilities?”

Benchmarking is a fun way to get creative ideas, to continuously learn, grow, and improve.

So what industry (other than yours) is interesting to you? Go and learn from them.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Apr 5 2012

To Improve Customer Retention, Make Products Free?

To increase its customer retention, Sprint announced that it’s discounting fees on their pay-as-you-go service. In the Fox Business article Sprint Looks to Boost Customer Retention With Lower repaid Bills, it’s noted how Sprint’s new Boost service “is $5 less than the starting price of the brand’s current lowest-priced plans.”

According to the article, “Sprint has had some success drawing customers to its Boost brand through a program that lets users lower their bills by $5 per month following every six on-time payments. Sprint’s prepaid customer rolls grew by 20% last year to 14.8 million, while its contract business shrunk.” In business school, that’s referred to as cannibalizing yourself. But I digress…

The interesting point here is that the company is trying to increase retention with a price drop (and also by pulling customers away from its other products).

Companies who truly understand customer retention strategies understand that a price drop is the absolute LAST thing you should ever have to do. This price drop retention strategy is for companies who have allowed customers to view them as a commodity, and some companies are thereby viewing themselves as commodities.

In virtually any industry, customers will stick with companies for many reasons, not just price. And those other reasons (product quality, wait times, customer service, responsiveness, relationships with the employees, affinity for the company, making customers’ lives easier/better/more hassle free, and on and on and on) provide the value piece that plays into decision-making far more in many customers’ eyes than price.

Before you do your next price drop to increase retention…before you start heading in the direction of free products…before you willingly cut your own profits in an effort to become more prosperous (if that even remotely makes sense), find out the specific factors that drive loyalty for specific customers, and do the best job possible of incorporating those into a 1-to-1 retention strategy.

Avoid the easy and (for the long-term) ineffective path to customer retention – avoid the price drop.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Mar 15 2012

Great Customer Service is Up to Great People

There’s a lot at play in the customer’s experience – it’s the phone system they wade through, the website that gives them directions, the signage that helps them navigate the store front, the process for returning an item. But what’s most at play in customer experiences it the interaction, the 2-way dialogue between employee and customer.

In the Southern Business Journal article It’s the customer! Learn to see service from patrons’ vantage point, the author quotes a sales manager at the “Wright Do-It Center” that says one of the keys to “great customer service for her store is hiring the right staff members — finding friendly, outgoing and positive people. New employees go through extensive customer service training, she says, and management tries to look for opportunities to reinforce what staff has learned.”

In other words, the best CRM system, the best phone system, the best website, and the best process need the best of employees to make it all work. They discuss the use of “secret shoppers” to assess performance and identify improvement opportunities. They address surveys to research customer preferences. But whatever needs to be changed or improved in the customer experience, it comes down to people designing the change. People implementing the change. People delivering the higher level of service.

No matter what your organization does to improve customer service, remember that it all starts with people. Try to hire, train, motivate, and otherwise enable employees to become great at customer service.

Identify the criteria you use to hire people, how you evaluate them, how you hold them accountable and motivate them to grow, how you tap their knowledge to understand the voice of the customer, and how you use their talents to constantly improve customer experience.

Don’t get so caught up in investing in the latest technological advance or marketing scheme that you lose sight of the key to it all.

To keep and grow with your customer base, keep and grow your best talent first.

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Mar 14 2012

Of Cash, Customer, and Culture – The Goldman Sachs Exit

What is Corporate Greed? One way to define it is simply that all that matters is the company and making money – the benefit to the customer is irrelevant. In the article Why I Am Leaving Goldman Sachs, Greg Smith announces why he left a high paying job and a company he had represented for almost 12 years – Goldman Sachs.

Read the article – click above. I’m not going to say much on it since it largely speaks for itself.

But the salient customer service point is that the question “How will this benefit the customer?” is not the core of the decision-making process at Goldman Sachs, not even a part of the decision-making process. In fact, it might be the opposite of the question asked in the decision-making process.

If you want a culture of customer service – a culture that employees can take pride in – put that question back into the heart of your discussion.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Feb 29 2012

Grow Your Slice of the Pie

Shareholders like earnings. People like pizza. So how do you get better earnings in a pizza firm?

According to Domino’s Pizza CEO Patrick Doyle in this article on cnbc.com, it’s about “retention and customer satisfaction.” The company’s 4th quarter net income rose to $30.9 million. He also addressed how social media has allowed more 1-to-1 communications with customers.

Not every business lives and breathes customer retention, and much of that is because those that don’t live and breathe customer retention instead live for the new conquest, the new sale, the new client. It doesn’t have to be an either/or thing – retention v. the new sale – but it’s something businesses need to debate. And the debate needs to start with this one question – how much of next year’s revenue will (or should) come from this year’s customers?

Any understanding of the importance of customer retention starts with an intentional determination of the financial impact of retention. So how much of a slice of the revenue pie comes from past customers? How can you increase that slice? What’s your retention target? What drives their loyalty? How can you grow relationships with them? And when they leave, how do you find opportunities to get them back?

Answer these questions to grow your slice of the pie.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Feb 22 2012

Why Customer Service is “IT” in Technology

In the ZDNet article IT managers: Customer service trumps managing costs, the author references a study of 220+ US-based Information Technology managers about their priorities, and customer service was listed as a high priority to the point that 70% felt that customer service was more important to them than managing costs. Now this is important to note, particularly since technology is often seen as a driver of productivity in organizations and, therefore, a cost reducer.

Of those responding to the survey, 65% said they felt “personal pressure” to provide good customer service. So what is driving this “personal pressure?” In most organizations, pressure to provide great customer service comes primarily from the customer. Now it may go through executive management to the middle managers, but it starts with the customers.

In the world of Information Technology, those customers are typically other departments in the organization. They’re complaining about the lack of responsiveness. They’re complaining about technology people too focused on the technology and not focused enough on the people to whom they’re supplying the technology. They’re complaining about attitudes of arrogance. They’re complaining about cumbersome processes to get a request submitted, an issue resolved, or a need met.

So when I.T. managers say they feel “personal pressure,” it’s typically coming directly from company executives who understand how overall company performance in serving the external customer is impacted by service to internal customers.

Now look at your business. Think about all the people internally that need to share information, ideas, technology, supplies, and materials with each other to meet that end customer’s need. To figure out how to make great improvement in customer service to external customers, figure out how to serve internal customers more efficiently, simply, and respectfully.

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Feb 8 2012

Don’t Let the CRM Tail Wag the Dog

Lacking a strategy on how to retain customers, many businesses look at their cool new CRM (Customer Relationship Management) system and go down the wrong path.

You mean we can setup the system to e-mail the customers? Great! Our retention plan is to blast our customers with e-mail marketing messages!!

You mean we can pull in fields from the sales module and use those with our current customers? Great! Let’s figure out what fields those are so we can make sure we get that information…so that we can have that information…so that we can look at that information…and we can manage our customer relationships!

You mean there are standard surveys and dashboards that we can use? Great! We’ll use those survey questions and those dashboards to manage our customer relationships!

Now what’s wrong with all these scenarios? Hopefully you’ve guessed it. The company is devising a Touch Point Plan based on a computer system’s feature. The company is determining what intelligence to acquire based only on what the system gives them. The company is surveying and managing through standard reports from a system.

The system is creating, executing, and managing the strategy. The tail is wagging the dog.

Instead, companies should determine their own retention and growth plans with existing customers, and determine how to leverage the CRM system to help when needed. Companies should determine what intelligence to gather, how to gather, and – actually as the starting point – what they’re going to do with that intelligence. Companies should determine how they want to analyze it; then get the system to do what it needs to do for them.

Systems are generally built generically – for broad application.

Your business is built SPECIFICALLY – for your customers. Lead your systems; don’t let them lead you.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Feb 1 2012

2 of 3 Customers Switched Providers – Did Yours?

A recent Accenture consulting research study noted that 2 out of 3 consumers worldwide “switched providers in at least one industry in the past year due to poor customer service.” In addition, “Forty-four percent of consumers said their expectations today are higher than they were just a year ago.”

Boiling these two key points down to a quick conclusion, you could say that today’s customers expect more, and they are highly likely to leave if you don’t meet those expectations.

So what do you know about TODAY’S customers? Don’t just think in terms of surveys you conducted on customers 2 years ago or market research conducted 4 years ago or focus groups you did 18 months ago. What do you know about the customers you have TODAY?

Older information from past customers about previous experiences in a different time can lead to faulty decisions for tomorrow.

Any organization that wants to continue to learn, to improve, to grow, to succeed has to – at the same time – continually communicate with and learn about their customers. What do they expect out of their experience? Why are they a customer? Why would they leave? What competitors are they considering or already patronizing? What makes them loyal to you, or what WOULD make them loyal to you?

Ensure you have an ongoing customer research strategy that provides you with the fresh intelligence you need to retain and grow with TODAY’S customer.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/